The ruling alliance suffered from policy paralysis, they said, adding that it did not take up the matter of
Chinese incursions into India strongly and nor could it take a firm stand on the beheading of Indian soldiers by Pakistan army.
The issue of Defence Minister AK Antony's flip-flop on the beheading of soldiers was also discussed as he was "compelled" by BJP to take a firm stand against Pakistan.
BJP also forced Prime Minister Manmohan Singh to make a statement on the country's economy which is going through a slump amid a drastic fall in the rupee's worth, they noted.
The meeting blamed corruption, highlighted by the exposure of a number of scams, for the policy paralysis, sources said.
BJP chief ministers, Shiraj Singh Chauhan and Manohar Parrikar, who were expected to participate in the conclave, are not likely to turn up, they said.
BJP, RSS and the Sangh affiliate organisations are upbeat about the party's prospects in the next elections after two consecutive defeats in 2004 and 2009.